I. Feature Stories: Debt Management Reforms in Programmatic

I. Feature Stories: Debt Management Reforms in

Programmatic Approach in Madagascar

adagascar’s external risk of debt distress deteriorated along with the

global COVID pandemic and shifted from low to moderate in 2020.

Then, Madagascar’s Government started to engage in a series of the

debt management reforms. Starting in 2023, these reform initiatives also

benefited from strong support by Debt Management Facility III Technical

Assistance and Training Programs.

Firstly, a Debt Management Performance Assessment (DeMPA), led by

the World Bank, was conducted in February 2023 to identify strengths

and areas for improvement in debt management practices. While there

has been some progress, the DeMPA identified challenges in many debt

management areas. Some of those challenges include the fragmentation

of the DMO structure, limited disclosure of debt reports, non-reporting

of SOEs’ debt, and the absence of a Fiscal Risk Management Framework.

After the DeMPA, a Reform Plan formulation technical assistance took place

during July-August 2023, which identified three main axes of reforms: (i)

debt management governance; (ii) legal and institutional framework and

monitoring of fiscal risks, in particular for debt-related contingent liabilities;

and (iii) domestic market development and cash management.

The authorities envisaged reforms to follow sound

international practices. The Government then approved

the debt management Reform Plan in November 2023.

Thirdly, a follow-up Reform Plan implementation

review and Fiscal Risk management advisory technical

assistance was provided in March 2024. Significant

advances have been achieved within just four months

of the government’s adoption of the reform plan, with

a notable improvement in the areas of governance and

fiscal risk management.

IN THIS ISSUE

Debt Management

Reforms in Programmatic

Approach in Madagascar

Regional Training

DMF Technical Assistance

and Training

Debt Webinars and

Publications

ISSUE 55

JANUARY–MARCH 2024

DMF NEWSLETTER

Antananarivo city, Madagascar Photo: Mesfin Bezawagaw

DMF NEWSLETTER

ISSUE 55

•

The Government has completed a logical framework (Log frame) for debt management reforms spanning

over 2024-2026, outlining priority reforms, technical assistance supports, and the expected outcomes/

outputs. The Log frame was presented to the donors’ community with the objective of aligning technical

assistance support programs and establishing a timeline for the Reform Plan actions and outputs/

outcomes. The Ministry of Economy and Finances led the workshop which helped to bring together

technical and financial partners and all concerned government entities.

•

The Government Council has approved a Decree for the organization of the DMO in the Front-Middle-Back

Office, with the services and departments set to be installed by July 2024.

•

The Ministry of Economy and Finance is currently reviewing the finalized draft law on active cash manage-

ment, which should lead to the establishing of a formal cash management committee/Treasury Committee.

•

The legal and institutional framework for managing Fiscal Risk was established and operationalized in

March 2024, which consists of (i) the Credit Risk Analysis Committee (CRAC) responsible for assessing

credit risk and (ii) the Fiscal Risk Committee (FRC) in charge of coordinating and finalizing the Fiscal Risk

Statement.

Finally, the first-year assessment of the Reform Plan’s progress will occur in December 2024. This evaluation

will take stock of progress and challenges encountered during the implementation the Reform Plan, while also

setting the objectives for the CY25 reform plans. In addition, the DMF program is expected to support capacity

building on the MTDS/ABP tool for the Middle Office of the DMO. This will be achieved through the creation/

operationalization of a MTDS/ABP working group involving the Central Bank and other departments at the

MEF. The objective is to inform the government cash plan and issuance calendars, feeding into the 2025 Budget.

II. Regional Training: Debt-Related Fiscal Risk training

Joint JICA|World Bank

he World Bank (WB) has been collaborating for several years with the Japan International Cooperation Agency

(JICA) in delivering debt management training for low- and middle-income countries. These training include

workshops on developing a Medium-Term Debt Management Strategy, and more recently (since 2019) on

assessing and managing debt-related fiscal risks – with a focus on guarantees and on-lending. The collaboration

has been taking place under an arrangement where JICA invites participants from candidate countries to

participate in workshops in Tokyo, lectured by World Bank debt management experts.

The workshops are commonly part of an extended

training program in which participants have the

opportunity to learn from World Bank experts but

also from Japanese government officials involved

in the relevant areas of the trainings. In the most

recent fiscal risks’ management training delivered in

February 2024, for example, participants have had

the opportunity to learn from international experts

and Japanese government experts in natural

disasters risk management, which also represent

a relevant source of fiscal risks in many of the participating countries. The participation of a wide variety of

countries creates an excellent environment for experience sharing and follow-up technical assistance.

Representatives and participants at the JICA, in Tokyo

DMF NEWSLETTER

ISSUE 55

III. Technical Assistance and Training

Technical Assistance

Enhancing Strategy and Policy

TYPE

MTDS MTDS MTDS Hybrid

COUNTRY

Bolivia,

January 8–12, 2024

Sao Tome and Principe,

January 16–24, 2024

Burundi,

January 29–February 2, 2024

ORGANIZERS

World Bank/IMF IMF World Bank

OBJECTIVE

The objective of the mission

was to provide capacity

building on the development

and update of the Medium-

Term Debt Management

Strategy - MTDS. The

technical assistance is a

follow-up of the Debt

Management Performance

Assessment (DeMPA)

carried out in the country

in October 2022.

The objective of the mission

was to deliver a TA on the

application of the medium-

term debt management

strategy (MTDS) framework

and the interpretation of

the Analytical Tool (AT)

results for officials from the

Central bank and different

departments at the Ministry

of Finance, Planning and Blue

Economy, including Planning,

Budget, and Treasury.

The objective of the

mission was to support

and accompany the DDP in

the design of Burundi’ first

debt management strategy

(DMS) and Annual Borrowing

Plan (ABP). The mission was

preceded by preparatory

sessions spread over

November 21, 2023-January

26, 2024 to review the MTDS

conceptual framework, the

MTDS-AT tool and prepare

the inputs required to run it.

HIGHLIGHTS

The mission provided

capacity building for the

authorities to use the

MTDS. The mission team

has helped the authorities

designing four illustrative

strategies with different

objectives and discussed

the results and their

interpretation. Government

officials participating on

the mission sessions have

presented the results and

their preliminary advice for

the Director of Public Credit

Directorate of MEF.

The mission provided an

overview of the MTDS

framework, including

linkages with the fiscal

framework and addressed

the authorities’ knowledge

gaps in MTDS design.

The mission trained the

participants on data

preparation for use in the

MTDS-AT and on debt

portfolio risk analysis.

The participants, guided

by the mission, identified

vulnerabilities in their

existing debt portfolio

and assessed alternative

financing strategies

to mitigate them.

The results of the MTDS

analysis underscored that

a strategy maximizing

concessional funding

and a strategy entailing

a redistribution of the

domestic portfolio, currently

dominated by Tbills with a

gradual shift toward longer-

maturity obligations seems

sound. That will require

the MFBEP to be proactive

in diversifying its sources

of external financing and

a strategy to develop the

Domestic Debt Market

including an effective

investor relations program.

DMF NEWSLETTER

ISSUE 55

Enhancing Strategy and Policy

TYPE

MTDS ABP Capacity Building MTDS

COUNTRY

Bangladesh,

February 17–29, 2024

Cameroon,

February 19–23, 2024

Nigeria,

February 26–March 6, 2024

ORGANIZERS

World Bank/IMF IMF World Bank/IMF

OBJECTIVE

The objective of the mission

was to provide capacity

building on the development

of the MTDS and support the

authorities updating the debt

management strategy.

The mission aimed to

strengthen the capacities of

officials from the General

Directorates of the Treasury,

the Financial Cooperation

and Cameroon Sinking Fund

in developing an annual

borrowing plan and issuance

calendar that aligns with the

debt management strategy.

This would ensure an optimal

execution of government

securities issuance operations

integrated into the cash flow

plan. It also helped enable

Treasury teams to master

the techniques for analyzing

and programming securities

repurchase operations

recently introduced on the

regional CEMAC government

securities regional market.

The mission aimed to

provide technical assistance

in developing and updating

the country’s Medium-Term

Debt Management Strategy

(MTDS). The support aimed

at providing capacity

building for the authorities

to design a DMS considering

the tradeoffs between

costs and risks.

HIGHLIGHTS

The mission provided

capacity building for the

authorities to use the WB-IMF

MTDS analytical tool. The

mission team supported

the authorities simulating

alternatives debt strategies

for the period covering fiscal

years 2025 to 2027. The

DMS analysis includes only

debt contracted directly by

the government. Liabilities

arising from retirement

benefits for government

employees through the

General Provident Fund (GPF)

were not included.

The mission (i) took stock of

the state of implementation

of the recommendations

of the AFC mission of

February 2023; (ii) discussed

with the authorities their

practices regarding the

process of developing the

issuance calendar and its

integration into the debt

management strategy and

the State cash flow plan; (iii)

provided participants with

practical training on the use

of the analytical tool of the

annual borrowing plan of

the IMF/World Bank for the

development of the issuance

plan and (iv) presented the

regulatory framework which

governs the repurchase

operations of public

securities on the CEMAC

market with practical cases

applied to the repurchases of

government securities.

The mission identified key

finding to improve debt

management in Nigeria and

provided recommendation

on action that needs to be

implemented in the near-

term, medium term and

long term together with

suggested priority.

continued

DMF NEWSLETTER

ISSUE 55

Improving Governance and Institutions

TYPE

Institutional Structure of the DMO

COUNTRY

Nepal, January 8–19, 2024

ORGANIZERS

IMF

OBJECTIVE

The technical assistance mission visited Nepal to assist the authorities in strengthening

functional operations of the recently established PDMO in MOF.

HIGHLIGHTS

This IMF TA mission is a follow up activity of an earlier IMF virtual TA mission in 2020 that

recommended on strengthening public debt management operations in Nepal, including

through legal and institutional reforms. In the context of the envisaged role of the PDMO, the

mission identified the key issues regarding the current operating framework for public debt

management, the legal framework and institutional arrangements, the organizational structure

and operations of the PDMO, and staff capacity within the PDMO. Based on its findings, the

mission helped develop a reform plan for strengthening the PDMO over the medium-term and

manage the transition for transfer of responsibilities from the NRB to the PDMO.

Enhance Strategy and Policy

TYPE

Cash Management Cash Management

COUNTRY

Zambia, January 17–24, 2024 Haiti, March 13–16, 2024

ORGANIZERS

IMF IMF

OBJECTIVE

The objective of the mission was rationalizing

government banking arrangement and

improving cash flow forecasting.

The objective of the mission was to assess

the operation of the TSA in the Central bank,

as part of the FIN FSR of the latter, following

recent cyberattacks.

HIGHLIGHTS

The mission developed an action plan and

made recommendations on strengthening the

TSA, improving institutional arrangements and

capacity for the cash flow forecasting. It also

introduced the IMF FAD’s Cash Forecasting and

Analysis Tool (CFAT) and provided hands-on

training to 20 officials from MoFNP and the

Zambia Revenue Agency. Authorities have

shown interest in adopting the tool.

The mission identified several weaknesses

in the legal and conventional frameworks

of the TSA as well as in its collection and

disbursement operations, which led to the

following recommendations: (i) Finalize the

revision of the MoF- Central bank and submit

the protocol between the Central bank and

commercial banks for formal approval by

the MoF; (ii) Automate all collection and

disbursement procedures and generalize the

payment method by bank transfer; (iii) Send

daily TSA debit and credit notices to the MoF,

establish a new internal control system for

operations, and automate all procedures for

transmitting statements and notices, including

for donor accounts.

DMF NEWSLETTER

ISSUE 55

Boosting Debt Transparency—Contingent Liability and Fiscal Risks

TYPE

Fiscal Risk Report (Virtual) Fiscal Risk and Follow-up Reform Plan Mission

COUNTRY

Tuvalu, January 17–24, 2024 Madagascar, March 19–April 2, 2024

ORGANIZERS

World Bank World Bank

OBJECTIVE

The objective of the mission was to (i)

understand implementation of the 2023

Ministerial Order and the functioning of the

Fiscal Risks Technical Working Group; (ii)

assess data requirements and institutional

capacity for preparing the first fiscal report;

and (iii) discuss and support analysis for the

first fiscal risk report (FRR).

The objectives of the mission were to: (i) deliver

a workshop on Credit Risk Assessment to

relevant stakeholders including the members

of the Fiscal Risk Committee and the Credit

Risk Committee; (ii) operationalize and provide

technical assistance to the newly created

Fiscal Risk Committee and the Credit Risk

Committee (iii) provide Technical Assistance

for Fiscal Risk Statement (FRS), (iv) discuss

options for FY25 PPAs, and ; (v) operationalize

the FY24-25 Reform Plan log frame, including

establishing/developing collaboration with the

donor community.

HIGHLIGHTS

The mission delivered presentations, shared

excel templates on assessment of risks,

relevant country FRR examples. The mission

also revealed a set of challenges towards the

preparation of the first phase of the fiscal risk

report in Tuvalu.

A series of workshop took place with the

members of the CREC and FRC to: (i) provide

technical assistance on the World Bank Credit

Rating Analytical Tool for SOEs; (ii) adopt the

procedures and the coordination mechanisms

involved in the CREC and the FRC operations,

and ; (iii) review in detail the Fiscal Risk

Statement template/content and decide on

the scope of the fiscal risks to be covered in the

2025 Fiscal Risk Statement. The mission also

discussed the operationalization of the FY24-25

Reform Plan log frame.

Boosting Debt Transparency—Contingent Liability and Fiscal Risks

TYPE

PPP Related Fiscal Risk

COUNTRY

Guinea, January 16–24, 2024

ORGANIZERS

IMF

OBJECTIVE

The objective of the mission was to appraise the Public-Private Partnership (PPP) institutional

and reporting framework in Guinea and advise the authorities on how to improve the

management of the associated fiscal risks. Provide hands-on capacity building on the use of the

PPP Fiscal Risk Assessment Model (PFRAM).

HIGHLIGHTS

This main bottlenecks that have hampered the effectiveness of the PPP governance framework

in Guinea were discussed and the MoF staff sensitized on the need to consider fiscal costs and

contingent liabilities generated by PPPs. Several tools, including a template for PPP fiscal risk

declaration and a proposal to structure the PPP strategy, were provided and recommendations

were made to improve fiscal risk management related to PPP.

DMF NEWSLETTER

ISSUE 55

Developing Debt Markets

TYPE

Primary Market Pricing Domestic Market Development

COUNTRY

Tajikistan, January 25–February 2, 2024 Bolivia, February 27–March 1, 2024

ORGANIZERS

IMF IMF

OBJECTIVE

The objective of the mission was to support

the authorities in developing the government

debt market through market-based issuance.

The objective of the mission was to deliver

a virtual seminar to the Bolivian authorities.

About twenty officials (broadly evenly split

between male and female) from both the cen-

tral bank (BCB) and the Ministry of Economy

and Public Finance (MEFP) attended the event.

HIGHLIGHTS

Despite a moderate level of public debt in

Tajikistan, the risk of external debt distress

is relatively high, which requires decisive

actions to diversify funding sources for the

government by developing a local currency

government securities (GS) market. The

authorities have initiated a series of reforms

to develop the debt market to mitigate

refinancing risks and reduce its reliance on

external debt. In January 2024, the Ministry

of Finance issued its inaugural 6-,12-, and

24-month government securities (State

Treasury Bills) with interest rates closely aligned

to market rates.

The webinar trained staff from these

institutions on yield curve estimation

methodologies and analysis. Discussions

focused on theory and practice with

examples to be applied in the case of Bolivia.

Participants provided a broad view on the

status and recent developments of the money

and bond markets in Bolivia and were very

active during the discussions.

Improving Governance and Institutions

TYPE

Reform Plan, Legal and Institutional Advisory

COUNTRY

Somalia, February 20–23, 2024

ORGANIZERS

IMF

OBJECTIVE

The objective of the mission was to assess the current regulatory and institutional frameworks for

public debt management and provide recommendations to address key gaps to bring it in line

with international practice.

HIGHLIGHTS

The mission recommended strengthening the regulatory framework for public debt

management, particularly in relation to debt objectives, strategy, and guarantees. Regarding

institutional arrangement, the mission recommended delineating the tasks of the current staff

in line with good practice along front, middle and back office, while waiting for new staff to be

recruited. It also suggested establishing a debt reconciliation framework and integrating debt

recording with budget planning and cash forecasting systems. An operational procedures manual

should be created to clarify responsibilities within the Ministry and facilitate communication with

the central bank and line ministries.

DMF NEWSLETTER

ISSUE 55

Boosting Debt Trancparency

TYPE

Debt Transparency (Virtual)

COUNTRY

Tonga, February 12–13 and March 12–14, 2024

ORGANIZERS

World Bank

OBJECTIVE

The objective of the mission was to support the MoF in producing quarterly and annual debt

bulletins and discuss other areas for improvements to managing debt records, debt reporting

and debt transparency.

HIGHLIGHTS

The mission identifies key weakness in the system and recommended enhancement in the areas of

debt bulletins, debt recording, institutional coordination, and domestic debt.

Debt Management Performance Assessments (DeMPA)

TYPE

DeMPA

COUNTRY

Vietnam, February 20–29, 2024

ORGANIZERS

World Bank

OBJECTIVE

The objective of the mission was to undertake a comprehensive assessment of debt management

functions and practices of Vietnam based on the 2021 Debt Management Performance Assess-

ment (DeMPA) methodology. As part of the assessment, the mission took stock of developments

since the last DeMPA mission undertaken in 2011 as well and worked closely with DMEF (the main

counterpart at the MoF) and met with relevant entities participating in debt management.

Improving Governance and Institutions

TYPE

Reform Plan and Debt Reporting Follow up

COUNTRY

DRC, February 5–9, 2024

ORGANIZERS

World Bank

OBJECTIVE

The objectives of the mission were to: (i) assist the DGDP in the launching and the operation-

alization of the Debt management Reform Plan, following its adoption in November 2023; (ii)

undertake a stock-taking of back-office operations, specifically debt recording, monitoring and

reporting practices in debt management, including the scope of reporting and how these are

published and provide a detailed and sequenced proposal for improving recording and debt

reporting capabilities.

HIGHLIGHTS

The mission builds on a programmatic approach that started with the DeMPA mission in Sep-

tember 2022, followed by the Reform Plan in June 2023 that issued recommendations and

identified actions in order to improve debt management practices in DRC. The mission helped

operationalizing the Reform Plan Log Frame and provided a draft Debt Reporting TA report with

Government for internally processing.

DMF NEWSLETTER

ISSUE 55

Training

Opportunities

263

Training

Participants

Gender Tag

Female Male

Enhancing Strategies and Policy

TYPE

Regional- MTDS/ABP Parliaments Role in Public

Debt Management

Regional MTDS

COUNTRY

Kenya,

January 29–February 9, 2024

Ghana,

February 5–9, 2024

Nigeria,

March 4–8, 2024

ORGANIZERS

World Bank, IMF

& AFRITAC South

World Bank & WAIFEM World Bank, IMF & WAIFEM

OBJECTIVE

The workshop aimed

at building capacity

in developing and

implementing a sound

DMS, through designing

an annual borrowing plan.

Participants were trained

on the use of the joint

IMF-WB MTDS analytical

tool to identify the risk

exposure embedded in the

government’s existing debt

portfolio and on assessing

the cost-risk trade-offs of

different DM strategies.

The objectives of the

workshop were to leverage

regional exchange of

practices and experiences

as a catalyst for jurisdictions

to identify country-level

strategies and reforms to

strengthen the institutional

relationship between debt

managers and parliament,

and to gather lessons and

information on how the

World Bank can engage

with parliaments in public

debt management.

The workshop aimed

at building capacity

in developing and

implementing a sound

DMS, through designing

an annual borrowing plan.

Participants were trained

on the use of the joint

IMF-WB MTDS analytical

tool to identify the risk

exposure embedded in the

government’s existing debt

portfolio and on assessing

the cost-risk trade-offs of

different DM strategies.

PARTICIPANTS

45 participants from

19 countries (Angola,

Botswana, Comoros,

Eswatini, Ethiopia, Kenya,

Lesotho, Madagascar,

Malawi, Mauritius,

Mozambique, Namibia,

Seychelles, South

Africa, South Sudan,

Tanzania, Uganda,

Zambia, and Zimbabwe)

attended the workshop.

30 members of Parliaments,

staff from debt related

committees in parliaments,

and staff from debt

management offices from

the Gambia, Ghana, Liberia,

Nigeria, and Sierra Leone

attended the meeting.

32 officials from

WAIFEM countries (The

Gambia, Ghana, Liberia,

Nigeria, Sierra Leone)

attended the workshop.

62%

38%

DMF NEWSLETTER

ISSUE 55

Enhancing Strategies and Policy

TYPE

Regional MTDS Regional MTDS

COUNTRY

Senegal, March 18–22, 2024 St. Kitts & Nevis, March 18–22, 2024

ORGANIZERS

World Bank and AUT World Bank, IMF and ComSec

OBJECTIVE

The workshop aimed at building capacity

in developing and implementing a sound

DMS, through designing an annual

borrowing plan. Participants were trained

on the use of the joint IMF-WB MTDS

analytical tool to identify the risk exposure

embedded in the government’s existing

debt portfolio and on assessing the cost-

risk trade-offs of different DM strategies.

The workshop aimed at building capacity

in developing and implementing a sound

DMS, through designing an annual

borrowing plan. Participants were trained

on the use of the joint IMF-WB MTDS

analytical tool to identify the risk exposure

embedded in the government’s existing

debt portfolio and on assessing the cost-

risk trade-offs of different DM strategies.

PARTICIPANTS

12 participants from 7 WAEMU countries

(Benin, Burkina Faso, Côte D'Ivoire,

Guinea-Bissau, Mali, Senegal, and Togo)

attended the workshop.

30 participants from 14 countries

(Anguilla, Antigua & Barbuda, Barbados,

St. Kitts & Nevis, St. Lucia, St. Maarten,

Suriname, Trinidad & Tobago, Bahamas,

British Virgin Islands, Dominica, Grenada,

Guyana, Jamaica) as well as participants

from Eastern Caribbean Central Bank and

Caribbean Development Bank participated

in the workshop.

continued

Boosting Debt Transparency

TYPE

Regional Workshop on Public Debt Transparency: Compilation, Reporting and Monitoring

COUNTRY

Malawi, February 19–23, 2024

ORGANIZERS

World Bank,AFRITAC East/South, MEFMI

OBJECTIVE

The workshop objective was to build capacity on issues such as debt recording, reporting, and

monitoring, and explored the connections between debt recording and reporting, with focus on

enhancing transparency. Participants had the opportunity to work on hands-on exercises aiming

to develop technical capacity to organize debt data and extract reliable information such as the

elaboration of Cost risk analysis, Cash flow tables, calculation of debt instrument payments.

PARTICIPANTS

31 officials from MEFMI countries (Botswana, Eswatini, Lesotho, Malawi, Mozambique, Uganda,

South Sudan, and Tanzania) attended the workshop.

DMF NEWSLETTER

ISSUE 55

Boosting Debt Transparency— Contingent Liability and Fiscal Risks

TYPE

Framework for Managing Government

Guarantees and Assessment of Credit Risk

of the Guarantees’ Portfolio

Regional - Debt-Related Fiscal Risk

COUNTRY

Regional JVI, February 5–9, 2024 Japan, February 19–28, 2024

ORGANIZERS

World Bank World Bank/JICA

OBJECTIVE

The objective of the mission was to provide

virtual training on the formulation of a

comprehensive framework for managing

government guarantees and analysis of credit

risk of the guarantees’ portfolio. participants

were familiarized with the framework for

managing government guarantees, including

core legal and institutional settings required

for prudent management of risks associated

with government guarantees. Participants

from Uganda, Kenya and Georgia presented

fiscal risk management practices from their

respective countries.

The objectives of the workshop were to help

participants to identify and classify the key

types of debt-related fiscal risks countries

are exposed to and the key characteristics

of a government’s exposure to these risks.

In addition to providing participants with

a framework for managing these risks, the

training focused on assessing and managing

credit risk from the debt of public sector

entities, with a focus on government guarantees

and on-lending.

PARTICIPANTS

26 participants from Azerbaijan, Georgia,

Kenya, Kosovo, Kyrgyz Republic, Moldova,

Rwanda, Tanzania, Uganda, Uzbekistan

attended the workshop.

32 representatives from Ministries of Finance

and Central Banks from 26 countries (Angola,

Bangladesh, Cambodia, Djibouti, Ethiopia,

Ghana, Honduras, Kenya, Lao, Mauritania,

Mexico, Mongolia, Morocco, Mozambique,

Namibia, Nigeria, Papua New Guinea,

Solomon Islands, Sri Lanka, Tanzania, Tonga,

Uganda, Uzbekistan, Vanuatu, Yemen, and

Zambia) attended the training.

Debt Sustainability Framework for Low Income Countries (LIC-DSF)

TYPE

Regional JVI

COUNTRY

Austria, February 26–March 1, 2024

ORGANIZERS

World Bank/IMF

OBJECTIVE

The main objective of the workshop was to familiarize the participants with the LIC DSF,

approved by the Boards of the World Bank and IMF in September 2017. The workshop aims to

introduce participants to (i) the standardized forward-looking analysis of the debt and debt

service dynamics under a baseline scenario and in the face of plausible shocks; (ii) the tailored

stress tests and realism tools; (iii) the assessment of debt sustainability in relation to indicative

country-specific debt burden thresholds; and (iv) the use of judgment to arrive at the final

assessment of the risk of debt distress.

PARTICIPANTS

23 participants from Ministries of Finance officials from Kyrgyz Republic, Tajikistan, Uzbekistan,

Ethiopia, Ghana, Somalia, South Sudan, Bangladesh, and Nepal participated the training.

DMF NEWSLETTER

ISSUE 55

III. Future Debt Events

Upcoming Technical Assistance Missions, April—June, 2024

COUNTRY ACTIVITY NAME DATES

Central Africa Republic National MTDS and ABP April 2024

Sri Lanka National Domestic Market April 2024

Congo, Republic National Fiscal Risk Regulations April 2024

Uganda National DeMPA April 2024

Chad National Debt Portfolio Fundamentals April 2024

Congo, Republic National Debt Reporting and Monitoring June 2024

Kyrgyz Rep National MTDS June 2024

Lesotho National MTDS/ABP June 2024

COUNTRY ACTIVITY NAME DATES

Barbados Regional LIC DSA June 2024

JVI Regional Fiscal Risk April 2024

Mozambique Regional LIC DSA April 2024

Liberia Regional LIC DSA May 2024

Kazakhstan Regional LCBM May 2024

Africa-WAIFEM Regional ABP June 2024

Africa-Francophone Regional ABP June 2024

Africa – MEFMI Regional MTDS design June 2024

JVI Regional SRDSF June 2024

Upcoming Training, April—June, 2024

DMF NEWSLETTER

ISSUE 55

IV. Debt Management Network Webinars and Publications

WEBINAR

Role of Parliament in Public Debt Management

The Revised Guidelines for Public Debt Management describe a relatively narrow role for parliaments in debt

management. The narrow framing does not limit parliament’s potential to contribute to debt management

more broadly, though. The clear intersection between debt management and fiscal policy and parliament’s

formal fiscal policy and oversight responsibilities means legislatures already possess a clear mandate for broader

engagement in debt management front. The pressing question is what this engagement could entail and

whether parliaments should incorporate this additional policy element into their routine budgetary governance

functions. The World Bank, in collaboration with Westminster Foundation of Democracy, MEFMI, and WAIFEM,

have undertaken two Roundtables on the role of parliament in public debt management, with participation of

members of parliament, technical staff from parliaments, and debt managers. The Roundtables have allowed a

discussion of various ways to discuss and explore various ways of engagement between the involved parties. This

webinar is focused on the role of parliament in public debt management with theme of ‘A Checklist for Making

your Life with Parliamentarians Easier’

. The webinar recording is available here.

BLOG

Urgent Need to Address Liquidity Pressures in Developing Countries

BLOG

A Silent Debt Crisis is Engulfing Developing Economies with Weak Credit Ratings

The world’s poorest countries face ballooning debt service payments, record high refinancing costs, limited

access to markets, and severely reduced capital inflows. Without action, 2024 will see a further rise in debt

vulnerability —potentially leading to reversals in development outcomes.

In this context, the current global debt relief architecture has focused mostly on countries with solvency problems,

including under the Common Framework, and that indeed remains critical. However, less attention has been

placed to a particular group of countries: low income and lower middle-income countries that are likely to

experience temporary liquidity pressures in 2024 and 2025 in the context of a very high level of external debt

repayments. These countries do not yet have solvency problems, and thus are not candidates for the Common

Framework or for full-fledged debt restructuring. But they need urgent liquidity support in 2024-25 to mitigate

the significant external debt roll-over risks they face. While this is a subset of a larger problem in terms of debt

vulnerabilities, without help, liquidity issues may turn into solvency problems. This, in turn, would exacerbate

risk perceptions for this type of countries further limiting capital inflows and accelerating outflows. Moreover,

it would expand the large number of countries already under debt distress and increase solvency problems.

More details are here.

Some developing economies are finally seeing light at the end of the tunnel. Global inflation is receding, and

global interest rates appear to have peaked, prompting a bond-issuance rush by these economies to refinance

their debt before the opportunity vanishes. In early January, Mexico, Indonesia, and several other developing

economies easily raised more than $50 billion from bond investors.

Yet 28 developing economies—those with the weakest credit ratings— remain stuck in a debt trap with no hope

of escape anytime soon. Their average debt-to-GDP ratio was nearly 75 percent at the end of 2023—20 points

greater than the typical developing economy. They account for a quarter of all developing economies with credit

ratings and 16 percent of the global population. However their collective economic activity constitutes a mere

5 percent of global output, which makes it easy for the rest of the world to ignore their predicament. Their debt

crisis, as a result, is silent—and it could intensify. More details here.

DEBT MANAGEMENT FACILITY

The World Bank Group

1818 H Street, NW Washington D.C. 20433

www.dmfacility.org | www.worldbank.org/debt | [email protected]

Newsletter, January–April 2024

The DMF Newsletter is published quarterly by the DMF Secretariat.

The newsletter is distributed to debt management practitioners from developing

countries, donors, DMF implementing partners, civil society organizations and private

sector firms. The newsletter aims to share DMF work plans, lessons learned, and news

and developments related to debt management.

DMF III Donors

African Development Bank (AfDB)

Austria - Federal Finance Ministry

Canada Global Affairs

European Commission

France - Ministry of the Economy, Finance and the Recovery

Germany - Federal Ministry for Economic Cooperation and Development

Japan - Ministry of Finance

The Netherlands - Ministry of Foreign Affairs

Norway - Ministry of Foreign Affairs

Switzerland - State Secretariat for Economic Affairs - SECO

United States of America - Department of the Treasury